Question

The costs of materials consumed in producing good units in the Production Department of Jacobs Company...

The costs of materials consumed in producing good units in the Production Department of Jacobs Company were $38,000 and $39,125 for June and July, respectively. The number of equivalent units produced in June and July was 4,000 and 4,250, respectively. Which of the following best describes the change in the cost of materials between the two months?

a.The cost of materials increased by $0.28 per unit, indicating an unfavorable change

b.The cost of materials decreased by $0.29 per unit, indicating an improvement.

c.The cost of materials increased by $0.88 per unit, indicating an unfavorable change.

d.The cost of materials increased by $1,125, indicating an unfavorable change.

1 0
Add a comment Improve this question Transcribed image text
Answer #1

Cost per equivalent unit of June = 38000/4000 = 9.50

Cost per equivalent unit of July = 39125/4250 = 9.21

So cost per equivalent unit decrease by (9.50-9.21) = 0.29

So answer is b) b.The cost of materials decreased by $0.29 per unit, indicating an improvement.

Add a comment
Know the answer?
Add Answer to:
The costs of materials consumed in producing good units in the Production Department of Jacobs Company...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • The costs of materials consumed in producing good units in the Production Department of Jacobs Company...

    The costs of materials consumed in producing good units in the Production Department of Jacobs Company were $38,000 and $39,125 for June and July, respectively. The number of equivalent units produced in June and July was 4,000 and 4,250, respectively. Which of the following best describes the change in the cost of materials between the two months? a.The cost of materials increased by $0.28 per unit, indicating an unfavorable change b.The cost of materials decreased by $0.29 per unit, indicating...

  • The costs of energy consumed in producing good units in the Baking Department of Pan Company were $20,216 and $23,746 fo...

    The costs of energy consumed in producing good units in the Baking Department of Pan Company were $20,216 and $23,746 for June and July, respectively. The number of equivalent units produced in June and July was 72,200 pounds, and 76,600 pounds, respectively. Evaluate the change in the cost of energy between the two months. Round all answers to the nearest whole cent. Energy cost per pound, June $ Energy cost per pound, July $ The cost of energy has appeared...

  • The cost of energy consumed in producing units in the bottling department of mountain springs water...

    The cost of energy consumed in producing units in the bottling department of mountain springs water company was $603 and $1050 for june and july respectively. The number of equivalent units produced in June and July was 6700 and 7500 liters respectively. Evaluate the change in the cost of energy between the two months Energy cost per liter, June ___ Energy cost per liter, July ___ the cost of energy has increased by _____

  • Using Process Costs For Decision Making The costs of energy consumed in producing good units in...

    Using Process Costs For Decision Making The costs of energy consumed in producing good units in the Baking Department of Pan Company were $41,123 and $42,636 for June and July, respectively. The number of equivalent units produced in June and July was 69,700 pounds, and 74,800 pounds, respectively. Evaluate the change in the cost of energy between the two months. Round all answers to the nearest whole cent. Energy cost per pound, June $ Energy cost per pound, July $...

  • Analyzing changes in unit costs The costs of materials consumed in producing good units in the...

    Analyzing changes in unit costs The costs of materials consumed in producing good units in the Forming Department of Thomas Company were $7,800 and $18,480 for September and October, respectively. The number of equivalent units produced in September and October was 780 tons, and 1,680 tons, respectively. Evaluate the change in the cost of materials between the two months. Round all answers to the nearest whole cent. Energy cost per ton, September Energy cost per ton, October The cost of...

  • The costs of materials consumed in producing good units in the Forming Department of Thomas Company were $76,000 and 577, 350 for September and October, respectively.

    Using process costs for decision making The costs of materials consumed in producing good units in the Forming Department of Thomas Company were $76,000 and 577, 350 for September and October, respectively.The number of equivalent units Produced in September and October was 800 tons and 850 tons, respectively. Evaluate the change in the cost of materials between the two months.

  • Cost of Production Report The debits to Work in Process—Roasting Department for St. Arbucks Coffee Company...

    Cost of Production Report The debits to Work in Process—Roasting Department for St. Arbucks Coffee Company for July 2016, together with information concerning production, are as follows: Work in process, July 1, 1,200 pounds, 20% completed $4,416* *Direct materials (1,200 X $3.4) $4,080 Conversion (1,200 X 20% X $1.4) $336 $4,416 Coffee beans added during July, 38,000 pounds 127,300 Conversion costs during July 56,640 Work in process, July 31, 2,000 pounds, 40% completed ? Goods finished during July, 37,200 pounds...

  • Production costs chargeable to the Finishing Department in June in Hollins Company are materials $15,900, labor...

    Production costs chargeable to the Finishing Department in June in Hollins Company are materials $15,900, labor $37,400, and overhead $19,300. Equivalent units of production are materials 21,900 and conversion costs 19,000. Compute the unit costs for materials and conversion costs. 1.) Materials cost per unit = .73 (correct) 2.) Conversion cost per unit = 3.82 (incorrect)

  • Production costs chargeable to the Finishing Department in June in Hollins Company are materials $16,646, labor...

    Production costs chargeable to the Finishing Department in June in Hollins Company are materials $16,646, labor $39,200, and overhead $19,208. Equivalent units of production are materials 20,300 and conversion costs 19,600. Compute the unit costs for materials and conversion costs. (Round answers to 2 decimal places, e.g. 2.25.) Materials cost per unit $ 2.98 Conversion cost per unit $ 0.82 e Textbook and Media Save for Later Attempts: unlimited Submit Answer

  • The cost of direct materials transferred into the Bottling Department of the Mountain Springs Water Company...

    The cost of direct materials transferred into the Bottling Department of the Mountain Springs Water Company is $901,600. The conversion cost for the period in the Bottling Department is $395,000. The total equivalent units for direct materials and conversion are 32,200 liters and 7,900 liters, respectively. Determine the direct materials and conversion cost per equivalent unit. Cost per equivalent unit of materials A Cost per equivalent unit of conversion Department M had 2,100 units 53% completed in process at the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT